Nvidia-Backed Startup Aims to Speed AI Data Center Grid Connections

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(Bloomberg) — Long queues to get connected to the strained energy grid have sent data centers scrambling for ways to get power fast — from hauling in natural gas turbines to revamping how data centers are designed.  

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Verse Enterprises Inc., a San Francisco-based startup, says its software can help data centers skip the line by managing off-grid batteries and solar. 

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The company already makes software that analyzes energy pricing and demand so facilities can monitor their energy consumption. Now it’s partnering with battery developer Calibrant Energy to incorporate storage and solar generation into the equation, a setup it says can avoid overloading the grid during peak demand. 

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It’s  betting this will convince utilities to take on data centers’ extra load without making costly and time-consuming infrastructure upgrades.

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“We’re now at the point that clean energy is actually the economic and feasible solution because the speed of deployment is fast,” Verse’s co-founder and Chief Executive Officer Seyed Madaeni said. 

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The company raised $54 million this spring in a Series B round that included chipmaking giant Nvidia Corp. as a backer. It’s part of an effort by AI companies to fund energy-efficiency startups that can help them cut their rapidly growing power use. Nvidia has also invested millions in Emerald AI, which makes a similar software. 

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But installing these systems isn’t a guarantee that utility companies will hook up data centers right away, according to Allison Weis, global head of storage at Wood Mackenzie. Flexibility in power demand can reduce barriers to getting connected, but utilities haven’t defined any standards for data centers to meet to get online, or said that batteries or on-site power generation will help fulfill them.   

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“There’s no uniform framework,” she said. 

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Federal regulators are set to unveil guidance on how the US will expedite data center connections. At issue is whether hyperscalers will be responsible for providing their own power generation, commit to flexible energy consumption or foot the bill for grid upgrades.

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Falling costs and rising electricity needs have led to a boom in battery deployment. The energy storage market is forecast to grow 21% this year as demand for batteries grows despite tariffs and restrictions on tax credits for batteries that rely heavily on Chinese components.

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Verse said it’s using the raise to scale deployment of their technology to more than 100 sites by early next year.

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